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4. Consider the data in the table below.
4-1) Write down the formula of the natural rate of unemployment.
4-2) What is the natural rate of unemployment in each of these years?
4-3) Explain how the unemployment rate evolved over time
Separation rate Finding rate Labor force (million)
2001 0.3% 4.4% 143.8
2005 0.3% 4.4% 142.3
2010 0.2% 3.5% 153.9
2015 0.3% 4.0% 157.1

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  • 1. 4. Consider the data in the table below. 4-1) Write down the formula of the natural rate of unemployment. 4-2) What is the natural rate of unemployment in each of these years? 4-3) Explain how the unemployment rate evolved over time Separation rate Finding rate Labor force (million) 2001 0.3% 4.4% 143.8 2005 0.3% 4.4% 142.3 2010 0.2% 3.5% 153.9 2015 0.3% 4.0% 157.1